Commercial Metals Company (CMC)

Quick ratio

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Cash	US$ in thousands	857,922	698,338	638,261	704,603	592,332	475,489	603,966	582,069	672,596	410,265	846,587	415,055	497,745	443,120	367,347	465,162	542,103	462,110	232,442	224,797
Short-term investments	US$ in thousands	—	—	—	453,457	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	1,158,950	1,182,270	1,118,510	1,216,350	1,240,220	1,244,650	1,263,550	1,287,290	1,358,910	1,330,280	1,153,870	1,095,610	1,105,580	1,073,120	895,604	869,052	880,728	880,602	961,694	961,458
Total current liabilities	US$ in thousands	834,850	764,954	762,547	786,955	843,714	852,944	1,066,150	1,077,550	1,356,990	1,390,690	825,201	892,120	980,473	853,367	674,093	613,199	745,263	627,343	649,134	601,964
Quick ratio		2.42	2.46	2.30	3.02	2.17	2.02	1.75	1.73	1.50	1.25	2.42	1.69	1.64	1.78	1.87	2.18	1.91	2.14	1.84	1.97

August 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($857,922K + $—K + $1,158,950K) ÷ $834,850K
= 2.42

The quick ratio of Commercial Metals Company has shown some fluctuations over the past few quarters. From November 2020 to November 2021, the quick ratio ranged from 1.25 to 2.42, indicating varying levels of liquidity. In the most recent period ending August 31, 2024, the quick ratio was 2.42, demonstrating that the company had $2.42 in liquid assets available to cover each dollar of current liabilities.

Overall, the quick ratio has generally been above 1, which suggests that Commercial Metals Company has a strong ability to meet its short-term obligations using its most liquid assets. The company's quick ratio trend indicates improving liquidity position, with the ratio peaking at 3.02 in November 2023. However, investors and creditors should continue to monitor future changes in the quick ratio to assess the company's ongoing liquidity and financial health.